What you need to do to become a licensed dealer in Georgia
To become a licensed used car dealer in Georgia, you must register with the Georgia Motor Vehicle Dealer Board, pass a background check, complete a dealer education course, and obtain a surety bond. The process takes roughly four to eight weeks from start to finish, though the timeline depends on how quickly you gather documents and schedule your exam.
Georgia requires this license before you can legally buy and sell more than five vehicles in a 12-month period. If you sell fewer than five, you do not need a license. The state treats this seriously — operating without a license when required carries fines and potential criminal charges.
Key Takeaways
- You must complete a Georgia Motor Vehicle Dealer Board-approved dealer education course before you can sit for the licensing exam.
- A surety bond (typically $25,000 to $50,000 depending on your business structure) is required before the board will issue your license.
- You will need a physical business location with a street address — a post office box does not count.
- The Georgia Motor Vehicle Dealer Board charges a $150 process fee and a $300 license fee, plus the cost of your surety bond and education course.
- Your background check will examine criminal history, financial responsibility, and prior dealer violations, and disqualifying factors vary by offense type and how long ago it occurred.
Complete a dealer education course approved by Georgia
Before you can take the licensing exam, you must finish a dealer education course from a provider the Georgia Motor Vehicle Dealer Board has approved. These courses cover state and federal motor vehicle laws, consumer protection rules, odometer fraud, title and registration procedures, and ethical business practices. Most courses run 8 to 16 hours and can be completed online or in person.
The board maintains a list of approved providers on its website. Course costs typically range from $100 to $300. Once you complete the course, the provider will issue you a certificate of completion — keep this document, as you will need to submit it with your license process.
You do not need to pass a separate exam on the course material. The course itself is the requirement; the dealer licensing exam (which comes later) is separate and tests your knowledge of Georgia motor vehicle laws.
Obtain a surety bond before explore
Georgia requires all used car dealers to carry a surety bond. This bond protects consumers if you fail to transfer title properly, misrepresent a vehicle, or violate consumer protection laws. The bond amount depends on your business structure: sole proprietorships and partnerships typically need $25,000, while corporations and LLCs may need $50,000.
You purchase a surety bond from an insurance agent or bonding company, not from the state. The cost is usually 1 to 3 percent of the bond amount per year, so expect to pay $250 to $1,500 annually depending on your bond size and the bonding company's assessment of your risk. Some bonding companies charge a flat fee instead of a percentage.
Once you have the bond, the bonding company will send a copy directly to the Georgia Motor Vehicle Dealer Board. You do not submit it yourself. Keep your own copy for your records.
Gather required documents and submit your process
Contact the Georgia Motor Vehicle Dealer Board to request an process packet, or read it from the board's website. You will need to submit the following with your process:
- Your completed process form
- Certificate of completion from your dealer education course
- Proof of your surety bond
- A copy of your business license or articles of incorporation (if you are a corporation or LLC)
- Proof of your physical business location (a lease, deed, or utility bill showing your business address)
- A government-issued photo ID
- The $150 process fee (check or money order; call the board to confirm current payment methods)
Mail your complete process packet to the Georgia Motor Vehicle Dealer Board. Incomplete applications will be returned, which delays your timeline. The board will send you a notice once your process is received and will begin your background check.
Pass the background check and dealer licensing exam
The Georgia Motor Vehicle Dealer Board will conduct a background check that examines your criminal history, financial responsibility, and any prior involvement with motor vehicle dealer violations. The board looks at felonies, misdemeanors related to fraud or dishonesty, and unpaid judgments or tax liens. Disqualifying factors exist, but they are not automatic — the board considers the nature of the offense, how long ago it occurred, and your circumstances.
If the board approves your background check, you will receive notice to schedule your dealer licensing exam. The exam covers Georgia motor vehicle laws, federal regulations (including odometer and title rules), consumer protection statutes, and ethical dealer practices. You have two hours to complete it. The passing score is typically 70 percent, though you should confirm the current passing score when you schedule.
You can take the exam at the board's office in Atlanta or at an approved testing center. Once you pass, the board will issue your license, provided your surety bond is still in place and your process fee has been processed.
Pay the license fee and receive your dealer license
After you pass the exam, the Georgia Motor Vehicle Dealer Board will notify you of the $300 license fee. Pay this fee within the timeframe specified in the board's notice. Once the fee is received and processed, the board will issue your dealer license, usually within one to two weeks.
Your license is valid for two years. You will need to renew it before expiration by submitting a renewal process, paying the renewal fee (currently $300), and confirming that your surety bond remains active. The board will send you a renewal notice 60 days before your license expires.
Maintain compliance after you receive your license
Once licensed, you must follow Georgia's dealer regulations. Keep your surety bond active at all times — if it lapses, your license becomes invalid. You must maintain a physical business location where you conduct business and where the board can inspect your records. You cannot operate from a home address or a post office box.
You are required to keep records of every vehicle you buy and sell, including the purchase price, sale price, odometer reading, title information, and any repairs or disclosures made to the buyer. The board can inspect these records without notice. You must also display your dealer license at your place of business.
If you move your business location, change your business structure, or allow your surety bond to lapse, notify the Georgia Motor Vehicle Dealer Board within 10 days. Failure to maintain compliance can result in license suspension or revocation.
Frequently Asked Questions
Do I need a dealer license if I only sell a few cars a year?
No. Georgia law does not require a license if you sell five or fewer vehicles in a 12-month period. However, if you sell six or more in that timeframe, you must be licensed, even if you do not consider yourself a professional dealer. The state counts all vehicles you buy and sell, regardless of how you describe your business.
Can I get a dealer license with a criminal record?
It depends on the offense. The Georgia Motor Vehicle Dealer Board does not automatically deny licenses to people with criminal histories. The board considers the nature of the crime, how long ago it occurred, and whether it relates to fraud, dishonesty, or financial responsibility. Contact the board directly to discuss your specific situation before you invest in a course and bond.
How long does the whole process take?
From the time you enroll in a dealer education course to receiving your license typically takes four to eight weeks. The course itself takes one to three weeks, gathering documents and submitting your process takes one to two weeks, the background check takes two to three weeks, and scheduling and passing the exam takes one to two weeks. Delays happen if documents are missing or if the board needs clarification.
What happens if I fail the dealer licensing exam?
You can retake the exam. The board will allow you to schedule another attempt, usually within 30 days of your first attempt. There is typically a fee to retake the exam (confirm the current fee with the board). You do not need to retake the dealer education course.
Can I operate as a dealer while my license process is pending?
No. You cannot legally buy and sell vehicles as a dealer until your license is issued. Operating without a license when required is illegal and can result in fines and criminal charges. Wait until you receive your actual license before you conduct any dealer business.